Sy Harding,
applied the Moving Average Convergence
Divergence indicator, or MACD, to the Dow
after the average best time to leave the market,
April 20, following the "sell in May and Go
away" strategy. Likewise, around the best
days on average to enter the market, October 16,
Harding's STS looks for positive MACD to enter
the market again.

For example. Sy waits for the MACD to turn
positive after October 16, the average best day
to enter the stock market based on the "Seasons
in the Sun Strategy." Harding writes:

The idea is that if a rally is
underway when the October 16 calendar date
for seasonal entry arrives, as indicated by
the MACD indicator, we will enter at that
time. However, if the MACD indicator is on a
sell signal when the October 16 calendar
date arrives, indicating a market decline is
underway, it would not make sense to enter
before that decline ends, even though the
best average calendar entry date has
arrived. Instead, our Seasonal Timing
Strategy simply waits to enter until MACD
gives its next buy signal, indicating that
the decline has ended.

In the Spring, Harding uses the
same MACD indicator to look for the favorable
exit point from the market any time after April
20, the average best day to exit the market
based on the "Seasons in the Sun Strategy."We use the same method to better pinpoint
the end of the market’s favorable period in the
spring. If MACD is on a sell signal when the
calendar exit day of April 20 arrives, we exit
at that point. However, if the technical
indicator is on a buy signal, indicating the
market is in a rally when April 20 arrives, it
makes no sense to exit the market just because
the calendar date has arrived. So our Seasonal
Timing Strategy’s ‘exit rule’ is to simply
remain in the market until MACD triggers its
next sell signal indicating the rally has ended.

In a
nutshell. STS looks for daily MACD to give
signals on or after the average best days to enter and
leave the market using the seasonal strategy.

The average best day to exit the market is April 20
The average best day to enter the market is October 16

IF MACD is negative on April 20, then you exit the
market that day. If MACD is positive, then you wait
for it to turn negative to exit the market.

Likewise, if MACD is positive on October 16, then you
enter the market on that day. If MACD is
negative, then you wait for it to turn positive to
enter the market..

Sy Harding is president of Asset Management Research
Corp., DeLand, FL, publisher of The Street Smart
Report. This article is an "interpretation" of
public information posted by Sy Harding. Harding
may have changed his formulas and not written about it
while keeping the old info on his web site which you
would only know for sure by subscribing to his
service.